Skip to main content
SpringerLink
Log in

Iteration in Walras's theory of tatonnement

  • Published:
De Economist Aims and scope Submit manuscript

Summary

It has been argued that Léon Walras did not have a theory of economic tatonnement but was instead concerned with a technique of mathematical iteration for the purpose of finding the solutions to the equations of a model of general equilibrium, that his work lacks an account of a means whereby prices are changed, and that he was uninterested in real economic adjustment processes. It is concluded that those judgments are incorrect. It is shown that Walras wanted to develop a realistic theory of time-consuming economic tatonnement in a freely competitive economy, and that he based it on his theories of how prices are changed, of iterative pricing, of entrepreneurial iterative behavior, and of a presumed convergence of the variables to equilibrium.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Arrow, Kenneth J. (1959), ‘Towards a Theory of Price Adjustment,’ in: M. Abramovitz,et al.,The Allocation of Economic Resources, Stanford, pp. 41–51.

  • Arrow, Kenneth J. and Frank H. Hahn (1971),General Competitive Analysis, San Francisco and Edinburgh.

  • Fisher, Franklin M. (1972), ‘On Price Adjustment without an Auctioneer,’Review of Economic Studies, 39, pp. 1–15.

    Google Scholar 

  • Goodwin, Richard M. (1950/1953), ‘Static and Dynamic Linear General Equilibrium Models,’Input-Output Relations; Proceedings of a Conference on Inter-Industrial Relations, Held at Driebergen, Holland, 1950, edited by the Netherlands, Economic Institute, Leyden, 1953.

  • Goodwin, Richard M. (1951), ‘Static and Dynamic Liear General Equilibrium Models,’Metroeconomica, 3, pp. 1–7.

    Google Scholar 

  • Jaffé, William (ed.) (1965),Correspondence of Léon Walras and Related Papers, 3 vols., Amsterdam.

  • Jaffé, William (1981), ‘Another Look at Léon Walras's Theory of Tatonnement,’History of Political Economy, 13 (Summer), pp. 313–36; and in Walker 1983, pp. 244-66.

    Google Scholar 

  • Morishima, Michio (1977),Walras' Economics; A Pure Theory of Capital and Money, Cambridge.

  • Saari, Donald G. (1985), ‘Iterative Price Mechanisms,’Econometrica, 53, pp. 1117–31.

    Google Scholar 

  • Walker, Donald A. (1972), ‘Competitive Theories of Tatonnement,’Kyklos, 25, pp. 345–63. Walker, Donald A. (ed.) (1983), William Jaffé's Essays on Walt-as, New York.

    Google Scholar 

  • Walker, Donald A. (1986), ‘Walras's Theory of the Entrepreneur,’De Economist, 134, pp. 1–24.

    Google Scholar 

  • Walker, Donald A. (1987a), ‘Edgeworth versus Walras on the Theory of Tatonnement,’Eastern Economic Journal, 13, pp. 155–65.

    Google Scholar 

  • Walker, Donald A. (1987b), ‘Walras's Theories of Tatonnement,’Journal of Political Economy, 95, pp. 758–74.

    Google Scholar 

  • Walker, Donald A. (1987c), ‘Léon Walras,’The New Palgrave. A Dictionary of Economics, edited by John Eatwell, Murray Milgate, and Peter Newman, New York.

  • Walras, Léon (1873/1874), ‘Principe d'une théorie mathématique de l'échange,’ delivered to the Académie des sciences morales et politiques, August 16 and 23, 1873, in:Séances et Travaux de l'Académie des Sciences Morales et Politiques (Institut de France), Collection, new series, 33rd year, 101, part I (January 1874), 97-116, Paris; and in Walras 1883, pp. 7–25.

  • Walras, Léon (1874),Eléments d'économie politique pure, ou Théorie de la richesse sociale, 1st ed., 1st part, Lausanne, Paris and Basle.

  • Walras, Léon (1875), ‘Equations de l'échange’Bulletin de la Société Vaudoise des Sciences Naturelles, series 2 15, pp. 367–94; and in Walras 1883, pp. 33-53.

    Google Scholar 

  • Walras, Léon (1877a), ‘Observation,’Bulletin de la Société Vaudoise des Sciences Naturelles, 14, pp. 562–64; and in Walras 1883, pp. 113-15.

    Google Scholar 

  • Walras, Léon (1877b),Eléments d'économie politique pure ou Théorie de la richesse sociale, 1st ed., 2d part, Lausanne, Paris and Basle.

  • Walras, Léon (dy1879), ‘Note préparée pour l'entrevue avec Ferry,’ in Jaffé 1965, 1, pp. 626-29.

  • Walras, Léon (1880a, 1880b), ‘La bourse, la spéculation et l'agiotage,’Bibliothèque Universelle et Revue Suisse, 3d period, 5, pp. 452–76; 6, pp. 66-94; and in Walras 1898, pp. 401-45.

    Google Scholar 

  • Walras, Léon (1883),Théorie mathématique de la richesse sociale, Lausanne.

  • Walras, Léon (1889),Eléments d'économie politique pure ou Théorie de la richesse sociale, 2d ed., Lausanne, Paris and Leipzig.

  • Walras, Léon (1890/1891), ‘De l'échange de plusieurs marchandises entre elles,’ delivered to the Société des ingénieurs civils, Paris, October 17, 1890, inMémoires et Compte Rendu des Travaux de la Société des Ingénieurs Civils, 5th series, 44 (January 1891), pp. 42–49; and in Walras 1896, pp. 463–71; Walras 1926, pp. 465–73.

  • Walras, Léon (1892a), ‘Théorie géométrique de la détermination des prix. De l'échange des produits et services entre eux. De l'échange d'épargnes contre capitaux neufs,’Recueil Inaugural de l'Université de Lausanne, Travaux des Facultés, Lausanne; and in Walras 1896, pp. 471–80; Walras 1926, 473–82.

  • Walras, Léon (1892b), ‘Geometrical Theory of the Determination of Prices,’Annals of the American Academy of Political and Social Science, 3, pp. 47–65.

    Google Scholar 

  • Walras, Léon (1894), Note on Vilfredo Pareto prepared for his installation at the University of Lausanne, in Jaffé 1965, 2, pp. 624–25.

  • Walras, Léon (1895), Enclosure to Vilfredo Pareto (January 9), in Jaffé 1965, 2, pp. 628-32.

  • Walras, Léon (1896),Eléments d'économie politique pure ou Théorie de la richesse sociale, 3rd ed., Lausanne, Paris and Leipzig.

  • Walras, Léon (1898),Etudes d'économie politique appliquée (Théorie de la production de la richesse sociale), Lausanne and Paris.

  • Walras, Léon (1900),Eléments d'économie politique pure ou Théorie de la richesse sociale, 4th ed., Lausanne and Paris.

  • Walras, Léon (1901), Notes for a Letter to Albert Aupetit, in Jaffé 1965, 3, 158.

  • Walras, Léon (1926),Eléments d'économie politique pure ou Théorie de la richesse sociale, definitive ed., Paris and Lausanne.

  • Walras, Léon (1954),Elements of Pure Economics, translated by William Jaffé from the 1926 ed., Homewood, Illinois.

Download references

Author information

Authors and Affiliations

  1. Indiana University of Pennsylvania, USA

    Donald A. Walker (University Professor)

Authors
  1. Donald A. Walker
    View author publications

    You can also search for this author in PubMed Google Scholar

Additional information

I am grateful to Indiana University of Pennsylvania for a grant that made possible the preparation of this article.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Walker, D.A. Iteration in Walras's theory of tatonnement. De Economist 136, 299–316 (1988). https://doi.org/10.1007/BF01151806

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF01151806

Keywords

Search

Navigation